Law Unit 4 Quiz

Agent

The party appointed by the principal to enter into a contract with a third-party on behalf of the principal

Bailee

The party who acquires possession, but not the title, of another’s personal property, under agreement

Bailment

The transfer of possession, but not the title, of another’s personal property, under agreement

Bailor

The party who gives up possession, but not the title, of personal property in a bailment

Cashier’s Check

A check drawn on a bank’s own funds and signed by a responsible bank official

Certified Check

A check for which the bank assures that the drawer has sufficient funds to make payment

Check

An order by a depositor to the bank to pay a sum of money to a payee

Drawee

The person, company, or financial institution ordered to pay a check

Drawer

The person who executes any check

Employee

A person hired to perform work that is directed and controlled by the employer

Employer

The party who hires employees to do certain work

General Agent

One who is given broad authority to conduct the principal’s business

Implied Authority

An agent’s authority to do things in order to carry out express authority

Independent Contractor

One who contracts to do jobs and is controlled only by the contract as to how performance is to be rendered

Negotiable Instrument

A writing drawn in a special form which can be transferred as a substitute for money or as an instrument of credit

Negotiation

The act of transferring ownership of a negotiable instrument to another party

Payee

The party to whom a negotiable instrument is made payable

Promissory Note

A negotiable instrument containing a promise to pay

Special Agent

One authorized by the principal to execute specific act(s)

Certificate of Deposit (CD)

A savings account with a fixed interest rate upon the deposit you put in and depending on how long before withdrawal